Garmin Earnings Slide as PND Sales Drop

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Like TomTom, Garmin reported that sales of portable navigation devices (PNDs) fell in the second half last year.

Garmin earnings fall as PND sales dropGarmin’s revenue for the December quarter fell 21 percent overall to $838 million and fell in the automotive/mobile segment by 31 percent to $559 million.
Total net earnings for the company fell 52 percent.

Garmin expects PND revenues for the full year 2011 to decline by 20 percent over 2010 as unit sales fall. However, the PND business is still expected to generate positive cash flow in the future, said the company.

Garmin’s marine and outdoor fitness revenues were up respectively in Q4 by 9 and 15 percent to $37 million and $171 million.

Fitness revenues should grow by 25 percent for the full year 2011, said the company and outdoor product revenue should grow by 5 percent.

In auto OEM, Garmin said the take rate of its navigation system in the new Chrysler 300 is over 50 percent; which is higher than the industry average. Auto OEM revenue for 2010 was less than $100 million but will grow this year.

Source: Garmin and AP via Yahoo! Finance

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